Time-Weighted Returns in Blueleaf

By default, Blueleaf performance calculations are based on the investor centric Internal Rate of Return (IRR) or money-weighted methodology. However, in some areas of Blueleaf you can optionally view time-weighted returns.

Time-Weighted Methodology

Blueleaf uses the formula described in this article to calculate a time-weighted return.

There are also a few key details about how we handle the calculation. In some cases this may cause small differences with other reporting systems.

• A sub-period is defined each time there is a cash flow transaction (deposit, withdrawal, etc), or if there is a fee transaction.
• Each sub-period will therefore be irregular, depending on the frequency of cashflow and fee transactions.
• Time-weighted returns are available either net or gross of fee. The "net" calculation treats fee transactions as a loss on performance. These fee transactions can be seen in the client portal's transactions page, by filtering on the category "commissions and fees".
• Accounts from 3rd party aggregation sources (eg: Yodlee, Plaid, ByAllAccounts) are excluded from the time-weighted performance calculations, however, performance for these accounts are available using the money-weighted methodology.

How to switch calculation methodology

Search or select a client, then click the "performance" tab

Then select from the dropdown shown below:

This updates the performance returns calculated on this page, for a simple comparison. However, it does not affect performance returns shown in the client portal or PDF reports (it will continue to use money-weighted).